Retrieved Funds Shines Light on Crypto Frauds

Recovering Lost Funds from Dubai Crypto Scam: Legal Avenues Explained

The world of digital currencies is full of promise but also fraught with risks—particularly for those who venture into crypto investments without sufficient experience. A couple living in Dubai recently became a cautionary tale for anyone considering trying their luck in the cryptocurrency market. Although their ordeal ended happily, with the couple ultimately recouping the lost 1.55 million dirhams, the story underscores the severe consequences of misplaced trust and the complex legal paths to restitution.

The Beginning of the Scam: Promises and Deception

A friend from the local community convinced the couple to take part in a digital currency transaction that guaranteed returns. Persuaded by the promise, the victims personally appeared at the defendant's office and paid 1.5 million dirhams to purchase 400,000 units of cryptocurrency. The transaction seemed to proceed smoothly, as they were promised that the coins would soon arrive in their electronic wallet.

However, the promised transaction never materialized. The fraudster offered various excuses and eventually became completely unreachable. The victims turned to the police and filed an official complaint. Investigation confirmed that the defendant had indeed taken the money but never executed the cryptocurrency purchase.

Criminal Proceedings: Limited Resolution

The case first went to the criminal court, where the defendant was held accountable for fraud and unlawful appropriation of money. Although the court established intent and imposed a fine of 10,000 dirhams, this ruling only addressed the criminal side of the matter. The fraud victims still had not recovered their lost funds.

This is common in criminal cases: even if the perpetrator is convicted, compensation is not automatic. In such circumstances, a separate civil lawsuit is necessary for the victim to claim repayment and additional compensation.

Civil Lawsuit: The Turning Point

The couple, with legal representation, turned to the civil, commercial, and administrative court. Their suit sought repayment of the 1.5 million dirhams, with an additional claim for 100,000 dirhams in damages for financial losses, missed investment opportunities, legal fees, and other burdens.

The defendant's defense argued for the suspension of the civil trial until the criminal judgment became final, also asserting that the unlawful appropriation of the money had not been proven in the criminal proceedings.

However, the court assessed the situation differently. It confirmed that the defendant had taken money for purchasing digital currency but failed to execute the transaction. According to the ruling, the criminal acquittal did not absolve the defendant of the responsibility to repay the money.

The Power of Law: Unjust Enrichment Doctrine

The court’s judgment referred to Article 318 of the UAE Civil Transactions Law, which mandates that anyone who unjustly enriches themselves at another’s expense is obliged to return it. The ruling emphasized that receiving money for a specific purpose—such as purchasing digital assets—and failing to follow through constitutes unlawful profit.

Ultimately, the court ordered the defendant to repay the 1.5 million dirhams and an additional 50,000 dirhams for the material and moral damages suffered. Thus, the total compensation reached 1.55 million dirhams.

Lesson Learned: Trust Isn’t a Substitute for Verification

The case highlights the fact that in the realm of crypto investments—particularly in unregulated environments—personal trust is not an adequate basis for a transaction. Even an acquaintance or seemingly trustworthy individual can become a fraudster if proper safeguards, contractual guarantees, and transparent accounting systems are not in place.

Experts advise that all investors—especially those in cryptocurrency—should ensure:

- Investment through only reliable, regulated platforms;

- All transactions are documented in writing, in contractual form;

- Avoidance of cash transfers or payments to unknown individuals;

- Immediate notification of authorities in suspicious situations;

- Legal advice before making large investments.

Conclusion: The Legal Route Works—But It’s a Long Road

The positive outcome of the Dubai case shows that the UAE legal system can protect victims from financial fraud, but this requires awareness, persistence, and legal expertise. Although the victims went through a long legal process, they finally received restitution.

Nevertheless, the story should serve as a warning to all investors: in the digital realm, losses can happen quickly if adequate precautions are not in place. Cryptocurrencies offer exciting and potentially lucrative opportunities, but only when handled within transparent, secure, and legally organized frameworks. Dubai's rapidly evolving financial environment aims to prevent such abuses with increasingly stringent regulations—but the first step must always be an investor's cautious approach.

(Source: Court Verdict Decision).